Gas commercialisation technologies

Alexandre ROJEY

Contents

• Main options

• Gas to Gas

• Gas to Fuels & Chemicals

• Gas to Wire

• Conclusion

Gas commercialisation technologies:main options

Treatment/fractionation

Natural gas

NGL/LPGtowards chemicals

Methane

CO2

Contaminants

Pipe

LNG

CNGTanker

Liquefaction

Electricity

FuelsChemicalsHydrogen

Chemical conversion

Electricity generation

Selection criteria

Economics

MarketEnvironmentDemand

Competition with other sourcesGas to gas competition

No gas flaringH2S and other contaminantsGHG emissions

CapacityDistance

Gas quality

Gas through pipelines

• High capacities

• High pressures and highly tensile steels

• Offshore pipelines

Long-distance transportation cost for large gas volumes

0.065

Capacity, 109m3 /year

Cost,

US

$/m

3 56 ”

0.030

0.035

0.040

0.045

0.050

0.055

0.060

8 10 12 14 16 18 20 22 24 26 28 30

High Pressure (X -80)

Conventional pressure (X -70)

56 ”

56 ”

46 ”

36 ”

42 ”

Source: GATE 2020 by ENI/IFP

Pipes/LNG Competition for 30 bcm/year capacity

Source: ENI

5

5500

Miles

0

1

2

3

4

500 1500 2500 3500 4500

GAS

OFFSHORE

LNG

GASONSHORE

ConventionalPressure

High Pressure

}

}

US$/106BTU

NGL / LNG / CNG

• Natural Gas liquids

• Very large LNG trains: –Mini LNG –Offshore LNG –CNG

NGL production

Dry gas Wet gasCondensate

gasAssociated gas Oil

Liquids

Offshore NGL recovery

LPG FPSO concept

International Gas Trade Prospects

Source: CEDIGAZ

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

1970 1980 1990 2000 2005 2010 2015 2020 2025

Pipelines LNG

5.9%15.6%

23.5%

21.5%

30 - 31%

36 - 37%

40 - 43%

22.3%

LNG share in total trade

Liquefaction plants: Increase in train capacity

0

1

2

3

4

5

6

7

8

9

1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

Mt/year

Existing plantsProjects

Lumut

Skikda

Das Is.1

MLNG 1

Arun III

Bontang III-E

RasGas & Qatargas

Sakhalin IISnohvit LNG

TangguhYemen LNG

Atlantic LNG

Damietta

NLNG

Qatargas

NLNG

350 $ t/yr 250 $ t/yrInvestmentcost

270 $ t/yr

200 $ t/yr

Liquefin process

High efficiency Plate-fin heat exchange line:

modular approach

Simplicity and reliability Wide range of capacity

Offshore LNG

CNG transport economics

Transport tariff400 mmcfd / 4 Bcm/y

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0 400 800 1 200 1 600 2 000 2 400 2 800 3 200 3 600 4 000

Miles

$/M

Mbt

u

CNG Coselle Offshore gas line (1000) LNG+ Regas.

Chemical conversion

• FT synthesis

• Oxygenates: MeOH, DME

• Hydrogen and chemicals (ammonia...)

Chemicals & hydrogen productionthrough syngas generation

Ultra-Clean DieselJet Fuel

LubricantsAlpha olefins

SYNGAS(CO + H2)

Acetic acid

MTBE

Urea

Fuel CellsGreen Fuels

Methanol

Ammonia

Formaldehyde

Fuels/ Additives

Olefins

PolyethyleneEthylene GlycolAlpha-olefins

PolypropyleneAcrylonitrile

Fuel CellsDME

PowerGeneration

DieselFuel

LPGSubstitute

FT Synthesis GTL

Hydrogen

GTL process

SyngasGeneration

UpgradingFT

Synthesis

Oxygen/steam

N.G.Syngas

Finalproducts

Waxes

Very large market Diesel fuels, kerosene, naphtha Clean fuels No sulfur, no aromatics

Cost effective technology New generation technology

Large capacity trains

GTL Economics

19 000

21 000

23 000

25 000

27 000

29 000

19 21 23 2517 27

Break Even $/Bbl

Investment $/BPD

Gas to wire

• AC Current

• DC Current

• CO2 capture and storage–combined with EOR

AC/DC Wire transportation

Underground 56’’ H.P. pipeline

37m

5 lines550 kV

(20 000 MW)

HVDC Transportation

AC Transportation

Power generation with CCS

Hydrogen-fired power-plant: 350 MWPre-combustion capture, EOR in 2009

Gas-fired power-plant: 860 MW – 2,5 Mt CO2 per year,Post-combustion capture, EOR in 2012

BP project "DF1-Miller"

Shell-Statoil: Tjeldbergodden project

Conclusion

• New technologies widen the range of options

• Higher oil & gas price facilitate investment decisions but lead to increasing costs

• CO2 have more and more to be taken into account